Lit Protocol Completes New Funding Round on October 20, 2025

This is the next big changer in privacy and decentralisation 🤯🤯 Came across @LitProtocol , a Decentralised network to manage your keys and privacy for AI agents, wallets, and user owned data. They have been building for more than a year, and guess what! , stats speaks for itself. - $400m+ TVL locked - $1.6m+ Decentralised wallets created - $135m+ trading volume. Recently,they launched $LITKEY and it has been a successful launch. Currently, a microcap, but this utility backed project can change privacy across web3 forever. Added more on the dip yesterday, and $10m marketcap is super early. Make sure to secure your bag, because LITKEY is gonna go places. #DYOR #AI #WEB3

The recent market environment has been tough. Waiting passively for altcoins and hoping for a “mountain season” isn’t realistic anymore. In this bull market, many AI agents have emerged that can automate strategies to cut losses and manage trades. But the problem is, I don’t dare give my private keys directly to a robot... I’ve been thinking: what if I don’t give the private key directly to the robot, but instead split it into fragments and distribute them across the network? The AI would only have access to usage rights, not the entire private key. I could also revoke permissions at any time, which would solve the security concern, right? After visiting friends and industry experts, I finally found Lit Protocol. It’s a Web3 infrastructure, often called the “missing encryption layer” between Web3 and AI. If Chainlink is for data feeds, then Lit is for access control and automation. 🧪 How does its underlying system work? 🔸 Threshold cryptography: The private key is split into many fragments and distributed across different nodes. Only when a certain threshold is reached can a temporary signature be generated. The key itself never fully exists in one place. 🔸 Trusted environment: Like a secure black box, it performs encryption and signing inside, visible only to the system, not outside, but it outputs correct results. 🔸 Conditional authorization: Rules are hardcoded—permitted contracts, addresses, per-transaction or daily limits, frequency, time windows, multi-party confirmation requirements, etc. Every operation initiated by AI must pass these rules before signing. 🛠 How is this product implemented in practice? 🔹 Gitcoin: A platform for funding public goods (donation matching); useful for secure fund allocation and multi-party collaboration. 🔹 Lens: A decentralized social graph; involves content access control, signature authorization, and interoperability between applications. 🔹 Spheron: Decentralized infrastructure (deployment, storage, computing); supports automated operations and permission management. Major projects like Terminal3, Tria, Morpho, Sentient, etc., have integrated Lit, managing assets worth over $420 million. 📊 Data and progress 🔸 Mainnet upgrade: Moving from v0 to v1 (Naga) in 2025, introducing the “Vincent” system for easier proxy authorization. 🔸 Network and usage: Over $400 million TVM, about 1.6 million decentralized wallets created, total transaction volume around $135 million, with monthly signature volume continuing to grow rapidly. 🔸 Tokens and nodes: Nodes are selected via staking competitions; the ecosystem is expanding. 👥 Business model It’s clear now that projects that rely solely on protocol revenue tend to perform better and can afford large airdrops—like Perps DEX and prediction markets. Lit’s system operates on a “pay-per-use” basis combined with “node staking”—developers pay each time they initiate a signature, decryption, or execution. Long-term, continuous calls—like automation strategies, bots, or B2B workflows—are the main revenue drivers. Clients that require compliance, multi-party collaboration, or cross-chain automation tend to have higher willingness to pay. Although early-stage infrastructure protocols have limited revenue, Lit’s network activity is very strong, with monthly signature growth at 50%, and total transaction volume reaching $135 million. As V1 mainnet matures and integrations increase (such as AI proxies, DeFi automation), revenue is expected to keep growing. In terms of backing and growth, Lit is quite solid: investors include 1kx, Collab+Currency, Protocol Labs, with nearly $20 million raised. On the data front: over $420M TVM, 150 million+ total transactions, 1.6 million decentralized wallets, and 30 million encrypted data points. As the ecosystem expands, more real-world use cases will emerge, increasing token demand. The current bull market’s AI proxy boom, multi-chain fragmentation, and rising privacy needs are all converging. The upcoming Naga v1 mainnet will boost efficiency, with multi-chain support for Solana, Sui, and others. The team is led by co-founders David Sneider and Chris Cassano (an early Bitcoin miner). Lit’s unique advantage is providing a top-down, unified trust stack—from key management to privacy data—reducing attack surfaces compared to multi-layer solutions. Given these signals, Lit is a rare opportunity that’s already deployed, gaining momentum, and approaching key milestones. It’s worth paying attention to and participating in. @LitProtocol

What is the most important in the crypto world? Safety!!! A few days ago, a member of the community had 112 BNB stolen, worth about 1 million RMB. I looked at the analysis by Cosine, and it is highly likely that it was caused by the leakage of the private key or mnemonic phrase, making the hope of recovery very slim. For us friends in the airdrop space, the security of private keys is the most important thing. First, protect your principal, and then you will have the opportunity to earn big profits. I find the Lit Protocol TGE very interesting these days. It is specifically designed as a security layer for Web3 + AI, which is a fantastic product for us airdrop participants. @LitProtocol ✅TGE is also quite novel. The TGE of Lit Protocol is also quite interesting. Just like Limitless from a couple of days ago, it is directly on the head DEX aerodrome of Base for the TGE, and the behaviors of the CEOs of both projects are also highly similar. Before the TGE, the CEO of Limitless fiercely criticized the high listing fees of exchanges, and then suddenly at the TGE, without any hesitation, just participated and gave. The CEO of Lit测 stated during the AMA that not being on CEX allows for more airdrops to be distributed to the community, emphasizing the importance of the community. Both of these projects are good projects in the Base ecosystem, and I think this is very likely a direction for the future TGE of the Base ecosystem. ✅Regarding the token LITKEY, it mainly has the following uses. 1. Node operator staking 2. The service fees that developers need to pay to use the Lit product. 3. Community Governance Token 4. Mainnet handling of signature/computation requests ✅Lit Protocol has several core products: Programmable Key Pair: PKP (Programmable Key Pair), a cryptographic wallet that does not require users to manage the complete private key themselves. The keys are split and distributed among Lit nodes around the world, and no single node can possess the complete private key, significantly enhancing security; developers can easily incorporate secure key management into anything through executable on-chain scripts called Lit Actions, enabling them to seamlessly add secure key management functions to anything. Developer Platform Vincent: The developer platform Vincent, based on Lit, allows users to configure conversational goals and permissions, creating autonomous AI Agents. These Agents can automatically trade real assets in DeFi protocols like Aave and Uniswap, relying on Lit's threshold cryptography for secure delegation, allowing users to confidently entrust operations to AI agents or third parties. ✅Application Status Lit Protocol has protected over $420 million in digital assets across networks such as Bitcoin, Ethereum, Base, Solana, and Avalanche. Manage over 1.6 million decentralized wallets and signers; Processed over 34 million signatures and encryption requests since launch; Supports over 10,000 daily active users, facilitating tens of millions of cryptographic operations each month; Leading projects such as Gitcoin, Lens, and Humanity Protocol are also using the underlying technology of Lit Protocol. Lit Protocol has a total financing of 15 million dollars, with a total token supply of 1 billion. The current token price is around 1.5u, and the FDV is 150 million dollars, which is not very high, so it can be a good time to accumulate some.

Lit Protocol is a decentralized key management network that combines MPC and TEE technologies to enhance the security of secret keys. LITKEY, as the native token, supports payments, incentives, and governance. The project has completed multiple rounds of funding, and the marketplace currently shows investor interest, indicating good development prospects. In the future, the network's performance and scalability will be further optimized.

As a leader in decentralized key management networks, Lit Protocol redefines the boundaries of digital asset security and intelligent automation through the integration of multi-party computation (MPC) and trusted execution environments (TEE). Its highlight lies in achieving a perfect balance between "security" and "efficiency"—users can enjoy AI-driven full-chain automated operations without sacrificing control of their Private Key. As of September 2025, the network has hosted over $340 million in assets, covering 1.66 million Wallet addresses, becoming an essential infrastructure in the Web3 world.